Arizona Lithium perks up for Prairie production

Drilling begins on a third well to complete a full production set on Pad # 1
Provides all the necessary infrastructure for DLE on commercial scale
First production remains on track for 2025

Special Report: Arizona Lithium is putting the last pieces together at its Prairie project as it prepares to deploy direct lithium extraction on a commercial scale.

Arizona Lithium (ASX:AZL) has begun drilling an exploration well in order to assemble a full production unit on Pad #1 as it prepares for first direct lithium extraction (DLE) from its Prairie project in the Canadian province of Saskatchewan in 2025.

With Well #1 operating as a brackish water source, the second successfully converted into a disposal unit, and the third now being prepped for exploration, it provides all the initial infrastructure necessary to deploy direct lithium extraction at a commercial scale.

Prairie currently holds 6.3 million tonnes of lithium carbonate equivalent, a resource that underpins last year’s prefeasibility study, which highlighted some of the world’s lowest operating costs and has already successfully produced battery grade carbonate.

Arizona Lithium managing director Paul Lloyd said the company was excited to have announced the beginning of drilling the third well of a soon to be completed set.

“Having the first 3 wells in place on Pad #1 allows us to finalise facility design, look to facility construction in H1 2025 and production of Lithium brines shortly thereafter,” he said.

“Having these wells in place is another significant milestone on our path to production of lithium on Pad #1 in 2025.”

Briney home on the Prairie

While the ASX-driven land rush into the Canadian lithium space was centred around the hard rock resources of The Great White North, AZL saw a different opportunity in the brines of Canada and its namesake US state.

Lithium extraction technology had remained stagnant for years, but an influx of demand has seen it improve quickly, and the company saw an opportunity to secure the Prairie project and the highest quality Canadian lithium brine resource discovered to date.

Work has since continued to show the right signs to get the project moving in earnest, and Arizona Lithium now looks to join the ranks of lithium producers in the new year.

This article was developed in collaboration with Arizona Lithium, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.